Technical Analysis Charts
Technical analysis charts are graphical displays that show asset price and trade volume data. Charts provide technicians with information about past price fluctuations. We can use such data to predict future market performance. There are different types of charts used…
Trend, Support, Resistance Lines and Change in Polarity
Trend Trend is perhaps one of the most important concepts in technical analysis. Under normal circumstances, market participants tend to make similar decisions and a trend may persist for some time. The following are a few additional concepts that every…
Common Chart Patterns
A chart pattern is a distinct trading formation appearing repeatedly and which can be used to predict future price movements of a given stock. The formations appear on price charts and create unique, recognizable shapes. Analysts study these formations when…
Technical Analysis Indicators
Technical analysis indicators are measures used to predict changes in the price of a security price based on price, market sentiment, or flow of funds. In essence, they try to establish how potential changes in market forces (supply and demand)…
Use of Cycles for Technical Analysis
[vsw id=”aIFkX46UShE” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Cycles are trends or patterns that may be exhibited by the securities market. The trends or patterns directly affect prices, leading to seasonal or periodical fluctuations that may recur over and over again. Cycles…
Inter-market Analysis
Inter-market analysis is a method of determining the strength or weakness of an asset class or financial market relative to other related asset classes or financial markets. These asset classes may include stocks, bonds, commodities, or even loan facilities. The…
Holding Period Return
Holding period return refers to the change in the value of an investment over the period it is held, expressed as a percentage of the originally invested amount. It also captures any additional income that one earns from an investment….
Time-Weighted Rate of Return
The time-weighted rate of return (TWRR) measures the compound growth rate of an investment portfolio. Unlike the money-weighted rate of return, TWRR is not sensitive to withdrawals or contributions. Essentially, the time-weighted rate of return is the geometric mean of…
Yields Used to Value Money Market Instruments
Money market instruments are Financial instruments that mature in less than a year. Examples are Treasury bills, commercial papers, or municipal notes. Most T-bills have a maturity of either 91 days or 180 days. Money market instruments yield measures differ…
Yield Conversions
Yield conversion is basically the process of changing from one type of yield to the other. We have already established the 4 main types of yields and their formulae – rBD, HPY, EAY, and rMM. Given any one of these…
